Visa has launched a new service, Prepaid Clearinghouse Service (PCS), which detects and prevents fraud schemes on prepaid cards.
The service allows financial institutions, card processors, prepaid programme managers to share prepaid card data such as enrolments, load funding, suspected fraudulent information and previous fraud report on cards.
Participants subscribing in PCS will receive real-time alerts that can be used in their fraud review decision process.
All the US Visa issuing financial institutions and programme managers must provide reporting information to PCS by June 2015.
Mercator Advisory Group prepaid advisory service senior analyst, Ben Jackson, said fraud is a constant threat for prepaid program managers, so being forewarned of what attacks are happening across the industry can help them prepare their defences.
Visa North America prepaid products head and senior vice president, Brian Triplet, said Visa’s PCS will deliver a comprehensive compilation of prepaid account-level data from across the industry, which will help reduce prepaid fraud losses for consumers, financial institutions and their clients.
"Criminals are increasingly targeting prepaid products which more and more consumers are using for every day purchases. While existing laws and industry safeguards help limit most consumer losses, PCS is a huge step forward for the industry to wards pro actively preventing fraud schemes targeting prepaid cards," Triplet added.